Last August, I harvested a basket of high yielding stocks from what I called “stony ground.”
My point was falling interest rates had become a double-edged sword for income investors. On the one hand, returns for dividend paying stocks and fixed income securities were rising. And companies’ generation-low borrowing costs were firing up earnings as well.
The dark side was a much shallower pool of income generating investments offering a living yield unaccompanied by unacceptable risks. My high yield recommendations from the Portfolio were three communications companies from the Conservative Holdings and Algonquin Power & Utilities’ (TSX: AQN, NYSE: AQN) affiliate Atlantica Yield (NSDQ: AY).
Outside the Portfolio, I recommended a trio of energy midstream master limited partnerships from the Utility Report Card and French utility Engie SA (Paris: ENGI, OTC: ENGIY). I also reprised six recommendations from my “Fixed Income Picks” table, a portfolio of utility bonds that I updated more recently in the January 14 Utility Roundup “Hunting Bond Bargains in a Seller’s Market.”
Invest Smarter! Join Conrad’s Utility Investor!
Smart investing. Taking advantage of real opportunities and not fads (and knowing the difference). Finding the companies and stocks that will deliver for the long haul, so investing lets you live instead of investing turning into your life. Roger Conrad has dedicated his career to these principles—and that’s what Conrad's Utility Investor delivers.
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Harness the tried and true wealth-building power of rising dividends.
Nothing compounds wealth like reinvesting a rising stream of dividends.
Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.